Real Estate: The Rent VS Buy Debate

Renting vs buying can be a very tough decision. Here and there, most people are convinced by real estate agents to own a house with fine amenities nowadays because of its luxurious yet convenient nature. But is it really necessary to immediately rent or buy one? When it comes to both matters, the first thing that people should ask themselves is if they have the purchasing capability. In looking for the right place, real estate agents must be given an update regarding the current condition of financial assets, liabilities and income of the client. Determining these factors will help the agents find the suitable condominium or town house that match the available resources of the person involved to put his/her future plans into perspective.

When enticed to either rent or buy a house, bear in mind to always observe the global market trends. The stock market usually acquaints businessmen and ordinary citizens on what to expect in the current prices of commodities around the world with respect to the monetary value. Aside from selecting the appropriate location of a personal space, consumers must not neglect the significance of the changing season and or occasion as it also influences the law of supply and demand. For example, every summer, the prices of fruit drinks increase as the supply drops due to hot weather. The same thing applies on the real estate field. Timing is a very important element in here because there are instances wherein the risk of inflation looms. It happens when the prices of products shoot at an all-time high that make the monetary value of other existing commodities useless or depreciated. Normally, it’s better to either rent or buy houses/condominiums during the off peak season in order to avoid the possibility of spending too much cash that could otherwise be unworthy in the following year especially if the residents are planning to move to another place sooner or later, because buying a house entails costs. Here in the Philippines, the prices of renting/buying condominiums changes when classes and work start from June to September. So it’s wise to invest in such places during the summer season (from March to May) where the prices are stable. To monitor the rise and fall of prices, business owners follow the price-to-rent ratio, a formula that helps them know whether to buy or to rent is a smart option since interest rates are also seen.

For those who are planning to own a house, they should evaluate the current state of their financial status and put a prime on the importance of job security. There are other people who earn a reasonable amount of money that is only enough for them or for their family. Owning a brand new house may be very expensive. In this case, buying is not a good decision and it is where the idea of renting must be considered as an alternative. Renting a condominium is better than renting an apartment because there are some facilities that apartments lack. Usually, tenants are the ones that still need to provide for the appliances (e.g. microwave, stove, heater, etc) and furniture (e.g. tables, chairs, etc) and maintenance is not included in the renting fee. But see to it that monthly payments are made accordingly. If owning a house is really a top priority, check your financial status first.

If some people are interested in buying a house or a condominium but are planning to relocate later on, then buying would not be a wise decision to make because the expensive amount of money involved will never be compensated. In this case, it’s better if they consider renting instead as long as the monthly payments are duly given and a back up savings account is ready for emergency purposes.

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